Hello Kitty License Has Mattel Stock on the Rebound

Beyond Meat is set to report earnings on Thursday

by Lillian Currens

Published on Jun 4, 2019 at 2:22 PM

The Dow is vying for its best day in months, on hopes for a Fed rate cut and amid easing trade tensions. In the meantime, investors have also been monitoring two other big gainers. Specifically, toymaker Mattel Inc (NASDAQ:MAT) and much buzzed-about Wall Street newcomer Beyond Meat Inc (NASDAQ:BYND). Below, we will dig into into what's driving the shares of MAT and BYND.

MAT Stock Set to Snap Losing Streak on Hello Kitty Buzz

Barbie founder Mattel just signed an international licensing agreement with Japanese company Sanrio Inc -- the owner of the Hello Kitty & Friends franchise -- to develop and create a new line of toys and games, slated for international release by 2020. MAT shares are surging in response, up 10.7% at $10.68, and on pace to snap a six-day losing streak. Plus, the equity is pacing for its best day since February. 

Today's rebound could catch many short sellers off-guard. Short interest surged 13.6% in the most recent reporting period, hitting an all-time high. The 77.33 million shares now sold short represent a whopping 22.6% of MAT's available float, and over three weeks of trading, at the security's average pace of trading. Should some of these bearish bets begin to unwind, a short squeeze could help boost the stock even higher. 

Beyond Meat Stock Pops on Veggie Burger Demand 

Newly public Beyond Meat stock is up 4.5% to trade at $100.50, after a Wall Street Journal report said restaurants are demanding vegan burgers from BYND and its competitors faster than the companies can supply them. Just last week, Beyond Meat announced plans to expand into Europe, and earlier this month said Tim Hortons is testing its vegan sausage sandwiches.

BYND stock is now trading at roughly four times its May 2 initial public offering (IPO) price of $25, and touched a record high of $108.67 just yesterday. What's more, the company will unveil its first earnings report as a public company after the close this Thursday, June 6. Options traders are pricing in a pretty big swing for the stock's earnings reaction -- 20.4%, per at-the-money implied volatility readings. It looks like most traders expect the equity to keep its head above the $100 mark, too, with peak open interest at the June 100 call. 

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